This whale doesn’t get frazzled by choppy seas; and you won’t see Buffet swim in the momentum waters either. Instead, his approach is surprisingly simple: He captures his prey for the long haul - buying undervalued companies with solid fundamentals and strong brands – a philosophy he learned under the tutelage of the great Professor Benjamin Graham.
His biggest kills include all out purchases such as General Re Insurance and Fruit of the Loom to big nibbles such as Coca Cola and Gillette.
Recently, this whale has acquired a taste for the railroad shares such as Burlington Northern. And it’s one that works: since just 1990, Buffet’s been swimming well ahead of the pack – nearly quadrupling the returns of the market in that time. Consequently, Buffett amassed a reported $52 billion personal fortune, making him the second richest man in the world.
But his wealth is matched only by his munificence – and he recently pledged $31 billion to the Gates Foundation – the largest charitable gift in history.
Warren Buffet: The biggest whale – with the biggest heart.
Eric Bolling explains that Warren Buffet puts out an annual investor letter. Eric calls it a great read.
Guy Adami says Warren Buffet looks for a company that meet 5 criteria. They are:
- $5 - $20 billion range
- consistent earnings power
- earning good returns on equity
- little or not debt
- simple businesses
Pete Najarian says Buffet also owns shares of Johnson and Johnson (JNJ) and Coke (KO), and investors should too.
> The Berkshire Hathaway Shareholder Letter